UK Mortgages

Which Mortgage?

First Time Buyers

Remortgages guide

Bad Credit

Get a Quote Now

Full Mortgages Guide

Home Buying Guide

Mortgage TIPS

Home Insurance

SEARCH Site

All UK Mortgage Types

Mortgage Guide
Click for Full Contents

How to Choose your Mortgage
Click for Full Contents

How long should my Mortgage Last?

Best Length of Mortgage Deals

Unless you have a poor credit history, you should never pay a standard variable rate (SVR) of interest.

This is because virtually every mortgage lender also offers a range of far cheaper fixed interest and discounted variable rate deals.

These can last for anything from a few months to your full mortgage term, but the most popular are usually between two and five years. At the end of this time, your lender will move you onto its SVR.

It's up to you to decide what length of deal best suits your needs.

Here are some things to take into account when deciding

The problem with very short deals

The cheapest fixes and the biggest discounts generally last less than two years.

You might be attracted to these if you are very short of money, but they are rarely a good idea.

They usually come with an extended redemption penalty that ties you to the lender's standard variable rate for several years after the special deal has ended, often more than cancelling out your early savings.

The problem with very long deals

If you are looking for certainty about the level of your future payments, you may be drawn to a long-term fix of, say, ten or more years.

If interest rates rise over this period, it could turn out to be a very shrewd move, but if they fall, you could end up seriously overpaying compared to other borrowers.

But, since you will probably face a hefty early redemption penalty to get out of the deal, it may not be worth remortgaging to a cheaper deal.

So unless you have an infallible crystal ball, you might be better to copy the bulk of borrowers who have gone before you and opt for a medium-term deal.

The benefits of two to five-year deals

Deals of this length offer a reasonable balance between stability and flexibility.

Opt for the shorter end of the scale, and you will face the cost of remortgaging to avoid paying you lender's standard variable rate sooner.

Opt for the longer end, and you won't have to remortgage so often, but you will be tied down for longer.

At the end of the day, it's a matter of personal choice.

To find out more about standard variable rates, read What is a standard variable rate?

For more on redemption penalties, go to Early redemption penalties explained.

Read On / Mortgage Basics

What is a mortgage?

A basic summary of the rules

The choices you need to make

How much can you borrow?

How do you prove your income?

How long are mortgages usually for?

What will happen to interest rates?

Read On / Mortgage Guide

How to Choose your Mortgage

Types of Mortgage

Remortgages

Where to Find your Mortgage

Getting a Mortgage in Principle

Costs of a UK Mortgage

Your Mortgage TOP TIPS

Calculators

A to Z all UK Mortgage Types

Read On

Guide to Buying Home in the UK

Guide to UK Home and Mortgage Insurance

Life Insurance Guide

Glossary of UK Mortgage Terms

Mortgage News

Click here to see your Latest Best Buy Mortgages

To read more on this subject please see the list below or your mortgage guide or your home buying guide

Read enough? Just want a quote? To get your best mortgage quote quickly and easily we can put you in contact with a recommended mortgage adviser. It's free, completely confidential and there's no obligation at all. Simply fill out the form below

Value of Property £ (eg 125000) Borrow How Much? £ (eg 92500) Your Mortgage Type    - please select - Re-Mortgage Purchase Buy to Let Overseas   First time buyer? Yes No Have you found property? Yes No Country   - please select - Andorra Australia Bahamas Barbados Belgium Belize Bulgaria BVI Cayman Islands Cyprus Canada Dutch Antilles France Greece Ireland Italy Jamaica Malta Mexico New Zealand Poland Portugal Spain St. Lucia Switzerland Trinidad & Tobago Turks & Caicos USA Other.. Sorry ! The amount you want to borrow is less than £25,000. This is the minimum allowed for a mortgage. But don't worry ! You could get the money via a personal loan. I want a free no obligation loan quote Click OK No thanks. I will change my borrow amount to more than £25,000 Click Cancel

Mortgage Basics

What is a mortgage?
A basic summary of the rules
How much can you borrow?
How do you prove your income?
How long are mortgages usually for?

Back to main contents

How to get a Mortgage in the UK

Here we give you a step by step guide on how to get a mortgage with special tips

I'm employed - shortcut

I'm self-employed - shortcut

I'm buying my first mortgage - shortcut

I've got a bad credit history - shortcut

Mortgage Basics

How to Choose your Mortgage

Types of Mortgage

Where to Find Your Mortgage

Getting a Mortgage in Principle

Cost of a UK Mortgage

Your Mortgage TOP TIPS